USDJPY is ready to take off!!!

USDJPY on the 1H chart appears to be in subwave v of wave 3 by Elliott Wave theory. It has formed a triangle consolidation pattern, out of which sub-subwaves i and ii of subwave v seem to have completed.

Based on the impulse sequence and assuming the triangle as a running flat correction, USDJPY looks poised for a final leg higher to complete wave 3.

Upside projection for wave 3 is near 143.80. Active traders can look to buy around 141.25 to target 143.80 area. Stop loss can be placed below 140.79.

For those already short USDJPY, it is crucial to hedge by buying and aiming for break-even. The pattern suggests impending upside, hence long orders are recommended with 145.00 as the next target beyond 143.80.

Trade active:

We currently have an open buy order at 141.25. Rather than keeping our stop loss around 140.79, we will trail it to the entry price of 141.25 to lock in profit. This allows us to hold the long position safely without giving back gains. With the buy order now in profit, we can afford to utilize a tighter trailing stop at breakeven. Our take profit target remains unchanged. We will wait for the position to reach the intended profit objective

Comment:

SL hit in the enter point with $0 LOSS. Set another buy limit order around 141.20 and SL: 140.79.

Trade active:

There are two options:
1- Move SL in the enter point and if again hit the SL take another position with lower price.
2- Keep the SL at 140.79 and wait market moves at least 70 pips then move sl to the enter price.
I will choose the second option.